FOLK2FOLK has boosted its investor rates and has scrapped its Innovative Finance ISA (IFISA) arrangement fee as part of an overhaul of its product range.
The peer-to-peer lender, which offers secured business loans, said on Monday that investors can now earn from 4.5 per cent to nine per cent per year, depending on the loan and the term.
Previously, the platform offered rates ranging from 5.5 per cent to 6.5 per cent.
Additionally, its IFISA annual arrangement fee will be scrapped from the beginning of the next tax year in order to boost investor returns, Folk2Folk said.
The West Country-based firm also announced that its borrowers will pay lower rates, starting at 0.38 per cent a month, with an increased loan-to-values (LTV) threshold of 60 per cent.
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“Folk2Folk is maturing as a business and our new, improved product range is testament to that. Our new rates and range of LTVs present an even more attractive proposition for both borrowers and investors,” Giles Cross (pictured), chief executive of Folk2Folk, said.
“In today’s low interest rate environment, savers and investors alike are always looking to maximise their returns.
“The majority of our retail investors are in the ‘at retirement’ stage of life, where the interest they receive on their capital is often life changing and we believe that the range of opportunities we will now be able to present to our investors will further bolster and reinforce that position, helping those who lend through us to lead and enjoy the best lives possible.”
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